The expected increased in transaction volume this year should bring property prices higher in 2018. Morgan Stanley expects property prices to double by 2030 in Singapore as the market comes closer to bottoming out. It works out to be about a 5% to 6% increase per annum.
Reasons for the expectation:
- Supply is set to decline about 40% per year from 2017 to 2018.
- Bank expects a growing number of household formation to be driven by singles and also a shift to higher-skilled foreign workers.
- Morgan Stanley predicts that 1 in 5 households in Singapore will be occupied by just one person by 2030 as compared to 1 in 8 households during 2010.
- Singapore economy is estimated to grow by about 3% from 2016 to 2030.